» Budget 2018 Key Highlights – No Changes In Personal Income Tax Rates, 10% LTCG Tax Introduced
Budget 2018 Key Highlights – No Changes In Personal Income Tax Rates, 10% LTCG Tax Introduced
Written By Easy Life on Thursday, February 1, 2018 | 2/01/2018 03:25:00 PM
NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET
Finance Minister Arun Jaitley’s fifth and last full Budget comes amid subdued economic growth, challenging fiscal situation and farm distress. What makes it all the more important is the upcoming elections in eight states this year and the Lok Sabha election next year, all of which put tough demands on him. How has Jaitely managed to balance populist demands, the need to support economic growth and Prime Minister Narendra Modi’s focus on fiscal discipline and reforms? Read the highlights from Budget 2018 below to find out:
Overview “Four years ago, we pledged to the people of the nation an honest government,” the Finanace Minister began by saying. Jaitley stressed on the structural reform implemented by PM Narendra Modi that have enabled the government to positively transform India from being one of the fragile five.
Jaitley said the indirect tax system had been simpler, and the use of technology has enabled the government to increase the tax base.
Jaitley said India achieved an average 7.4% GDP growth in the last 3 years of the BJP government, in addition to the manufacturing sector being back on the growth path. Jaitley also said exports are expected to grow at 17% this fiscal.
He also said the government hopes the economy will grow at 7.2% to 7.4% in the second half of 2018-’19.
The Finance Minister also said that the focus would now switch from Ease of Doing Business to Ease of Living.
* Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal
* GST revenue will be received only for 11 months, that will have an effect on balance sheets
* Rs 21.57 lakh crores transferred as net GST to states as against projection of Rs 21.47 lakh crores.
* 85.51 lakh new tax payers filed income tax returns in FY17
* NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET
* Growth in direct taxes (till Jan 15) is 18.7 %
* 100% tax deduction is allowed to co-operative societies
* Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17
* Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices
* Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D
* Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
* Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration
* Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees
* Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos
* Rs 19,000 cr revenue loss on direct tax in last fiscal
* LONG TERM CAPITAL GAINS EXCEEDING RS 1 L AKH WILL BE TAXED AT 10% WITHOUT INDEXING
* Short term capital tax remains at 15%
* A tax on distributed income at 10%
Imports and Exports * Customs Duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to ‘Make in India’
* Social welfare surcharge of 10% on imported goods.
* 8 crore poor women will get new LPG connections.
* PM Saubhagya Yojana: 4 crore poor people will get power connection.
* The government will spend Rs 16,000 crore on this scheme.
* Govt plans to construct 2 crore toilets in next fiscal year under Swach Bharat Mission
* Government target house for all by 2022. 51 lakh houses have been constructed affordable houses in rural and further 50 lakh houses in urban areas.
* Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas
* Rs 3 lakh crore target has been set for the Mudra Yojana
* Rs 4.6 lakh cr sanctioned under MUDRA Scheme
* Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years
* Women contribution to EPF reduced to 8% for first 3 years